...an overview of why gold is a good investment choice. I will give an analysis of gold’s current and historical prices, why an investor should invest in gold, and the wide range of options that are available to an investor that chooses to invest in gold. Gold is recognized worldwide as a true form of currency. It has a universal store of value; it can function as a hedge against inflation, protection against the declining value of the dollar and is a good option to sustain wealth in the declining financial market. Gold is a currency that option and is desired by many people, easy dividable, scarce, and durable. Gold had an intrinsic value before it became money and that is the foundation of its worth. Gold has increased in price over the last decade by 500%. In the increase in price is attributed to the drop in the value of the dollar and the expectation that inflation will rise to above average levels. Gold was valued at $900 an ounce in April 2008, $1,888.70 in August 2011 and as of July 25, 2012 it was valued at $1,608 an ounce. Through March 2012 the spot price of gold returned of 18.5 percent, while the S&P 500 has had a return of only 4.11 percent. The chart below shows the increase in gold prices for the last ten years and gold’s performance price for the last 30 days, six months, one year, and the last five years. 10 year gold price history in US Dollars per ounce. http://goldprice.org/gold-price-history.html http://goldprice.org/gold-price-history-html ...
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...protecting and enhancing your wealth in the financial markets. This article introduces some of the most important concerns in the world of investment. Your Objectives Let’s start with your objectives. While clearly the goal is to make more money, there are 3 specific reasons institutions, professionals and retail investors (people like you and me) invest: For Security, ie for protection against inflation or market crashes For Income, ie to receive regular income from their investments For Growth, ie for long-term growth in the value of their investments Investments are generally structured to focus on one or other of these objectives, and investment professionals (such as fund managers) spend a lot of time balancing these competing objectives. With a little bit of education and time, you can do almost the same thing yourself. Knowing Yourself – Your Risk Profile One of the first questions to ask yourself is how much risk you’re comfortable with. To put it more plainly: how much money are you prepared to lose? Your risk tolerance level depends on your personality, experiences, number of dependents, age, level of financial knowledge and several other factors. Investment advisors measure your risk tolerance level so they can classify you by risk profile (eg, ‘Conservative’, ‘Moderate’, ‘Aggressive’) and recommend the appropriate investment portfolio (explained below). However, understanding your personal risk tolerance level is necessary for you too, especially with something...
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...Exchange-traded fund From Wikipedia, the free encyclopedia An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks.[1] An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.[2][3] ETFs are the most popular type of exchange-traded product.[citation needed] Only so-called authorized participants (typically, large institutional investors) actually buy or sell shares of an ETF directly from or to the fund manager, and then only in creation units, large blocks of tens of thousands of ETF shares, which are usually exchanged in-kind with baskets of the underlying securities. Authorized participants may wish to invest in the ETF shares for the long-term, but usually act as market makers on the open market, using their ability to exchange creation units with their underlying securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.[4] Other investors, such as individuals using a retail broker, trade ETF shares on this secondary market. An ETF combines the valuation feature of a mutual fund or unit investment trust, which can be bought or sold at the end of each trading day for its net asset value, with...
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...An index ETF is one where the underlying is an index, say Nifty. The APs deliver the shares comprising the Nifty, in the same proportion as they are in the Nifty, to the AMC and create ETF units in bulk (These are known as Creation Units). Once the APs get these units, they provide liquidity to these units by offering to buy and sell through the stock exchange. They give two way quotes, buy and sell quote for investors to buy and sell the ETFs. ETFs therefore have to be listed on stock exchanges. There are many ETFs presently listed on the NSE. 3.2 SALIENT FEATURES An Exchange Traded Fund (ETF) is essentially a scheme where the investor has to buy/ sell units from the market through a broker (just as he/ he would by a share). An investor must have a demat account for buying ETFs (For understanding what is demat please refer to NCFM module ‘Financial Markets : A Beginners’ Module). An important feature of ETFs is the huge reduction in costs. While a typical Index fund would have expenses in the range of 1.5% of Net Assets, an ETF might have expenses around 0.75%. In fact, in international markets these expenses are even lower. In India too this may be the trend once more Index Funds and ETFs come to the market and their popularity increases. Expenses, especially in the long term, determine to a large extent, how much money the investor makes. This is because lesser expenses mean more of the investor’s money is getting invested today and over a longer period...
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...Kong Special Administrative Region (HKSAR) abides by the principle of keeping intervention into the way in which the market operates to a minimum and has endeavoured to provide a favorable environment in which business operates. Its policy of low and simple taxation allows maximum room for business initiatives and innovation. There is a strong emphasis on the rule of law and fair market. There are no barriers of access to the market by foreign businesses and no restrictions on capital flows into and out of Hong Kong. Hong Kong’s privileged location in the Northeast Asia, on the other hand, makes it a gateway to China. Moreover, Hong Kong is situated at appropriate time zones that allow 24-hour continuous trading of foreign exchange and gold when the two markets in New York and London are closed. II. Financial Players and Intermediaries in Hong Kong Preview:A closer look at the financial markets As of July 2010, there were 146 licensed banks, 22 restricted licence banks, and 27 deposit-taking companies in Hong Kong, together with 70 local representative offices of overseas banking institutions. These institutions come from 34 countries and include 70 out of the world’s largest 100 banks. Together they operated a comprehensive network of about 1,390 local branches, excluding their principal place of business in...
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...Executive Summary A significant element of investment management is the mechanisms of alternative investment. A strategic selection of the right asset allocation can provide a means of protection against unsystematic risk, also known as “diversifiable risk”. Though a well-diversified investment portfolio can provide a means of risk minimisation, allocating assets across a varied range of investments through alternative means is essentially the most effective mechanism. A combination of private equity, hedge funds, venture capital, commodities, real estate and art can assist in achieving this objective. Alternative investments were restricted to professional fund managers and large private investors. However, many small investors now have a way to access alternative investments through venture capital, hedge funds and private equities (Brailsford, T 2011). Following the Global Financial Crisis (GFC), investors shifted capital into lower risk investments. Some financial institutions and individual investors preferred to place a large percentage of their capital into lower risk products such as commercial papers and treasury notes. However, others believe that such events provides a good opportunity to invest their capital into higher risk instruments in order to gain greater returns in the mid-to long-term. The core principles of investment is the diversification of assets to minimise risks. Therefore, alternative investments plays a pivotal role in broadening the selection...
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...principle of regular investments. It is like your recurring deposit where you put in a small amount every month. It allows you to invest in a MF by making smaller periodic investments (monthly or quarterly) in place of a heavy one-time investment i.e. SIP allows you to pay 10 periodic investments of Rs 500 each in place of a one-time investment of Rs 5,000 in an MF. Thus, you can invest in an MF without altering your other financial liabilities. It is imperative to understand the concept of rupee cost averaging and the power of compounding to better appreciate the working of SIPs. What is Systematic Investment Plan or SIP? SIP works on the principle of regular investments. It is like your recurring deposit where you put in a small amount every month. It allows you to invest in a MF by making smaller periodic investments (monthly or quarterly) in place of a heavy one-time investment i.e. SIP allows you to pay 10 periodic investments of Rs 500 each in place of a one-time investment of Rs 5,000 in an MF. Thus, you can invest in an MF without altering your other financial liabilities. It is imperative to understand the concept of rupee cost averaging and the power of compounding to better appreciate the working of SIPs. SIP has brought mutual funds within the reach of an average person as it enables even those with tight budgets to invest Rs 500 or Rs 1,000 on a regular basis in place of making a heavy, one-time investment. While making small investments through SIP may not...
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...is mutual fund & fund Manager? Ans.: A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments and other securities. Fund manager Textbook Definition- Person who manages the money on behalf of the investors by buying/selling stock, bonds etc. Internet Definition-The person(s) responsible for implementing a fund's investing strategy and managing its portfolio trading activities. A fund can be managed by one person, by two people as co-managers and by a team of three or more people. Fund managers are paid a fee for their work, which is a percentage of the fund's average assets under management. 2. How can a common man benefit from the Mutual Fund investment? Ans: Mutual fund investment gives common man opportunity to invest in different class of assets. It also includes investing in money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. It gives diversified portfolio where different asset classes have different level of risk where risk can be covered. As it is managed by professional common man just have to invest. It gives high returns as compare to investing in only one asset class. Thus, instead of investing in particular money market or bond market investment mutual fund is better option to enjoy investment in different assets class and higher returns. 3. Which are the different Asset Classes Mutual Funds...
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...2005-06 to Rs.112.52 trillion in 2010-11. Currently, the average monthly volume on the Indian commodity exchanges is Rs.6 trillion. MCX leads the industry, followed by NCDEX. MCX is not only number one in India but has achieved some global milestones too. It was the largest exchange in silver (in terms of number of futures contracts traded in 2010), number two in gold, copper and natural gas and number three in crude oil. When we say India is the largest exchange in silver, it is a great achievement for the Multi Commodity Exchange. Talking about agricultural commodities, the Indian commodities market has futures contracts of commodities such as black pepper, cumin seed, mentha oil and many more which are internationally traded but only listed in India; internationally traders tend to consider these as benchmark rates. Though it is at a nascent stage, the volumes in the Indian commodities market have a different story to tell. From Rs.20 trillion, the volumes have reached Rs.112.52 trillion in FY10-11. When we see this kind of a spurt in volumes, we must remember that it has primarily been a futures market, without Options. Foreign institutional investors, domestic institutions, banks and insurance companies are not allowed to trade on the Indian commodity bourses and a majority of volumes come from jobbers, arbitrageurs, retail traders and small scale enterprises and corporates (for hedging). Even portfolio management services are not permitted While the turnover in the equity...
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... What is Mutual Fund ? • A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. • The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. • The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Mutual Fund Operation Flow Chart [pic] 1. Organization of Mutual Funds : [pic] 2. Types Of Mutual Funds There are a wide variety of Mutual Fund schemes that cater to your needs, whatever your age, financial position, risk tolerance and return expectations. Whether as the foundation of your investment programme or as a supplement, Mutual Fund schemes can help you meet your financial goals? A. By Structure Open-Ended Schemes : These do not have a fixed maturity. You deal with the Mutual Fund for your investments and redemptions. The key feature is liquidity. You can conveniently buy and sell your units at Net Asset Value (NAV)...
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...t=BXP®ion=gbr 1 of 3 Log In Premium Company Site Company News Welcome! Membership Home Portfolio Nasdaq 4756.22 27.55(0.58%) Stocks Bonds S&P 500 2031.54 15.61(0.77%) Funds ETFs DJIA 17396.37 144.84(0.84%) CEF Markets Gold 1266.10 36.80(2.99%) Tools Real Life Finance Discuss Light Crude 39.77 1.31(3.41%) Advertisement Beximco Pharmaceuticals Ltd GDR BXP Add to Portfolio Quote Chart Income Statement Statement Type Annual Get E-mail Alerts Stock Analysis Print This Page Performance Balance Sheet Data Type As of Reported PDF Report Key Ratios 10 Things to Start Doing Data Question Financials Valuation Insiders Ownership Filings Bonds Cash Flow Period 5 Years Show Report Dates Data Scroll View Rounding Export Ascending 3/17/2016 9:24 PM Balance Sheet for Beximco Pharmaceuticals Ltd GDR (BXP) from Morn... http://financials.morningstar.com/balance-sheet/bs.html?t=BXP®ion=gbr 2 of 3 Fiscal year ends in December 2010-12 2011-12 2012-12 2013-12 2014-12 21,372 23,033 24,590 27,471 29,001 6,192 7,149 8,197 8,903 8,366 Cash 2,331 2,712 3,240 3,622 2,697 Cash and cash equivale... 1,471 519 553 596 222 859 2,193 2,687 3,026 2,475 BDT in Million except per share data Assets Current assets Short-term investments 2,331 2,712 3,240 3,622 2,697 Receivables Total cash — — 1,162 1,249 1,397 Inventories 1,984 2,618 2,434 2,845 3,048 Other current assets 1,877 1,819 1,361 1,187 1...
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...WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH SPECIALISATION PROJECT ON ANALYSIS OF INVESTMENT OPTIONS BY MAHIMA SUHALKA PGDM RM 2014 – 2016 (FINANACE SPECIALISATION) ROLL NO. 48 PROJECT FACULTY GUIDE PROF. PRITI SAMANT PROJECT COMPLETION CERTIFICATE This is to certify that project titled “Analysis of Investment Options” is successfully done by Ms. Mahima Suhalka in partial fulfilment of her two years full time course ‘Post Graduation Diploma in Management’ recognized by AICTE through the Prin. L. N. Welingkar Institute of Management Development & Research, Matunga, Mumbai. This project has been completed under my guidance. ___________________________ (Signature of Faculty Guide) Name: ______________________ Date: ______________________ Acknowledgement I take this opportunity to express my sincere gratitude to everyone who supported me throughout the course of this PGDM project. I am thankful for their aspiring guidance, invaluably constructive criticism and honest advice during the project work. I express my warm thanks to Prof. Priti Samant, my project guide who provided me with critical insights on this project and helped me make this a success. I would also like to acknowledge the help of all my friends and respondents who enabled me to conduct this research project. Thank You All!! Table of Contents Chapter 1 Introduction ...
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...Gold as an investment option | | Mayank Chandola MBA in International BusinessSymbiosis Institute of International Business | | Table of Contents History of the yellow metal 2 Why it is attractive? 3 Portfolio diversifier 4 Inflation hedge 4 Investment risks in Gold 5 Risk with physical gold 5 Political Risks 5 Market Risks 5 Exchange rate risks 5 Demand/Supply side risks 5 Outlook 6 References 7 History of the yellow metal Gold has always been used as a medium of exchange for goods since ancient times and has not suffered devaluation in the same ways as paper currency. Gold has a record long history as a commodity and as a store of value. It has been formally a monetary media in and around the world. Gold has faced complete official demonetization long back, yet it experiences continued and renewed interest as a private or unofficial monetary medium. Even governments around the world are making greater use of gold in international financial affairs. Over time, gold has undergone three major transitions: 1. Gold was a medium of exchange in the early civilization 2. Next, an international banking system was developed around it, in which paper money was fully convertible into gold 3. This convertibility was ceased in 1971 by the then president Richard Nixon and a purely fiat money system took its place. Early civilizations equated gold with gods and rulers. Humans almost intuitively place a high value on gold, equating it with...
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...Markets (NISM) Certification Examination for Mutual Fund Distributors. Workbook Version: July 2011 Published by: National Institute of Securities Markets © National Institute of Securities Markets, 2010 Plot 82, Sector 17, Vashi Navi Mumbai – 400 705, India All rights reserved. Reproduction of this publication in any form without prior permission of the publishers is strictly prohibited. Disclaimer The contents of this publication do not necessarily constitute or imply its endorsement, recommendation, or favoring by the National Institute of Securities Market (NISM) or the Securities and Exchange Board of India (SEBI). This publication is meant for general reading and educational purpose only. It is not meant to serve as guide for investment. The views and opinions and statements of authors or publishers expressed herein do not constitute a personal recommendation or suggestion for any specific need of an Individual. It shall not be used for advertising or product endorsement purposes. The statements/explanations/concepts are of general nature and may not have taken into account the particular objective/ move/ aim/ need/ circumstances of individual user/ reader/ organization/ institute. Thus NISM and SEBI do not assume any responsibility for any wrong move or action taken based on the information available in this publication. Therefore before acting on or following the steps suggested on any theme or before following any recommendation given in this publication user/reader...
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...Discount Instrument Coupon Instrument Price-Yield Relationship of a Debt Security Modified Duration of a Debt Security Debt – Investment Drivers & Approaches A. Interest Risk B. Forward Rates Yield Curve Estimation Shape of Yield Curve Debt Portfolio Structures Credit Risk & Yield Spreads Assessment of Sovereign Debt Servicing Ability Assessment of Private Debt Servicing Ability Credit Rating Structured Obligations Yield Spread & Changes in Credit Risk Financial Statements: Analysis & Projections for Equity A. Financial Statement Analysis Revenue, Cost & Margin Structure Capital Efficiency Dividend Yield Price – Earnings Ratio B. Financial Projections Equity – Valuation & Investment Decisions (Part 1) A. Required Rate of Return on Equity B. Weighted Average Cost of Capital (WACC) C. Fundamental Valuation Approaches D. Dividend Discounting Free Cash Flow Enterprise Value Earnings Multiple Price to Book Value Multiple Margin of Safety Equity – Valuation & Investment Decisions (Part 2) A. Economy & Industry Analysis B. C. Economy Analysis Industry Analysis Top-Down or Bottom-up? Technical Analysis Derivatives A. Background B. Interest Rate Futures C. Credit Default Swaps (CDS) D. Currency Futures E. Currency Options F. Equity Futures & Options Alternate Assets & Structured Products A. Alternate Assets B. Gold Real Estate Structured Products Portfolio Insurance Risks SEBI Regulations...
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